FRC unveils draft corporate governance code, seeks input

The Financial Reporting Council has released the exposure draft of the Nigerian Code of Corporate Governance 2018 for the private sector.

This is coming more than one and a half year after the suspension of the National Code of Corporate Governance that specified a term limit for leaders of religious bodies, especially churches and mosques.

The controversial NCCG, which was issued by a former Executive Secretary, FRC, Jim Obazee, on October 17, 2016, was suspended on October 28, 2016, following public outcry against it by religious bodies and some corporate bodies.

The FRC, while announcing the release of the draft NCCG at a press briefing on Wednesday in Lagos, said it planned to embark on public hearings and awareness campaigns in all the geopolitical zones of the country, including the Federal Capital Territory, to elicit comments and reactions from key stakeholders.

The Head, Directorate of Corporate Governance, FRC, Nelson Anumaka, said the feedback would be taken into consideration in finalising the code.

He noted that on January 18, 2018, a 15-man Technical Committee, which comprised of representatives of regulatory agencies, industry professionals and experienced individuals with corporate governance expertise, was constituted by the board of the FRC.

He said, “The committee was saddled with the responsibility of reviewing the suspended National Code of Corporate Governance 2016, considering the extensive public commentary received on the private sector code, and come up with recommendations for the review and update of the code for the board’s consideration.”

Anumaka described the draft NCCG as the output of the committee.

The Executive Secretary/Chief Executive Officer, FRC, Daniel Asapokhai, said the proposed NCCG for the private sector was informed by the need to institutionalise the highest standards of corporate governance consistent with best practices.

He said, “It is our belief that this code will promote ease of doing business, attract local and foreign investments and enhance the integrity of the Nigerian market by entrenching a culture of disclosure, transparency and accountability. In addition, this code will raise public awareness for essential corporate values, ethical practices and stakeholders’ confidence.”

According to him, the practices recommended in the code are flexible and scalable and can be applied by all organisations regardless of their size.

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